Hummingbot, a platform for a decentralized, data-driven approach to market making, has launched its first live campaigns for liquidity mining. The inaugural campaigns will last for a period of 12 weeks with a total reward pool of USDC 51,000.
These initial campaigns will reward participants for trading in eligible tokens on Binance.com. Rewards will be paid out weekly based on weekly periods beginning on Tuesdays 12.00 am GMT through the following Tuesday.
What is liquidity mining?
Liquidity mining allows anyone (communities, the general market); to participate in market making for a token and contribute to its liquidity and improve the tradability of that token.
By participating, users are not only helping to support the token and the project, but through liquidity mining, they are able to earn token rewards based on their trading activity.
Fair model for market maker compensation
Participants are rewarded for contributing to token liquidity by placing orders. Rewards distribution is designed to be aligned with a miner’s risk: the more consistently orders are placed over time, at tighter spreads, and with larger sizes, the more token rewards are earned.
Liquidity mining is open to everyone
Even novice traders or non-technical users can simply download Hummingbot, configure the trading parameters, begin market-making and earning liquidity mining rewards in only a few minutes.
Liquidity mining returns
Ultimately, the market and level of participation determine how much reward each individual participant earns (the more participants, the more the rewards have to be divided); the annualized returns for liquidity mining have the potential to exceed 10-20% and even be multiples of what someone could earn on lending or staking tokens.
Hummingbot Miners App
The new Hummingbot Miner web app is now live at https://miners.hummingbot.io.
This app is the place to go for:
- Real-time campaign metrics: current participation details and returns for active campaigns
- Rewards information: up-to-date earnings and rewards information for registered users
- Registering for Hummingbot miners: (1) connecting Ethereum wallet (for rewards) and (2) configuring read-only API keys (for your trading/mining data)